Don’t Forget about Insurance

If buying a home is on your radar, you’ve probably been keeping an eye on mortgage rates and home prices. But don’t forget about homeowners’ insurance. 

Insurance has always been part of owning a home. But over the past few years, it has become a larger expense for many homeowners – something that’s especially frustrating when affordability already feels tight.

Here’s what you should know.

Insurance Costs Have Gone Up

You’ve probably heard stories from friends or family about their premiums increasing.

While no one likes rising costs, knowing what to expect can help you plan ahead. Your first insurance payment is typically included in your closing costs, but after that it’ll become part of your monthly housing expenses.

rate increases are slowing

Most of the headlines focus on how home insurance is getting more expensive. And that’s true. Depending upon where you live, rates may have gone up dramatically due to weather or the type of home you own. (Think Florida where severe storms and the quality of home construction have combined to cause major increases.)

But here’s the part that’s easy to miss.

Insurance premiums are still rising.

But they’re not rising as fast as they were.

According to the latest report from Rate Insurance, 2025 saw the first slowdown in annual premium increases since 2019 (see graph below):

That doesn’t mean premiums are getting cheaper. It simply means the rapid increases of the past several years may finally be starting to ease – a small but welcome step in the right direction.

But what you’ll pay in one part of the country can look very different from what someone pays somewhere else.

Where You Buy Can Make a Big Difference

Insurance costs vary because some parts of the country experience more claims than others.

Your premium will depend on things like where you’re buying, the home itself, and the coverage you choose. A condo has different insurance requirements than a stand alone house.

On Cape Cod, some locations may require flood insurance, as well. This is information your realtor should have. It’s important not to assume based on the location of the home that this insurance is not required. You’d be surprised at what areas are considered to be in a flood zone!

Ways To Lower Your Costs

While you can’t control everything that comes with buying a home, you can control how prepared you are. If you’re crunching the numbers and trying to find ways to save, Insurify and NerdWallet offer these tips that can help you get the best insurance price possible:

• Shop Around – Compare quotes from multiple companies.
• Bundle Policies – Combine home and auto to see if a bundle price is cheaper.
• Ask If There Are Discounts – Don’t miss out on savings you may qualify for.
• Highlight Upgrades – Features like a new roof or storm windows can cut costs.
• Improve Your Credit – A stronger credit score can mean better premiums.

One of the smartest things you can do is get an insurance quote before you make an offer. That way, you’ll know what your monthly housing costs are likely to be before you commit.

An insurance professional can walk you through your options and help you find coverage that fits both your needs and your budget.

Bottom Line

Homeowners insurance has become a bigger part of the homebuying conversation. But it doesn’t have to become a bigger source of stress.

The key is knowing what to expect before you buy. Get an insurance quote early, factor it into your budget, and lean on trusted local professionals to help you make the most informed decision possible.

If you wish to speak with an insurance professional, we can connect you with several who we work with. Just contact us at 508-388-1994 (Mari and Hank) or 781-264-5517 (Colleen) and we’ll pass on contact information.

Mari, Hank, and Colleen

PS: Don’t forget to let us know if you’ll be attending our “How You Can Sell Your House This Fall” seminar next week on Wednesday, August 12, from 6:30pm – 7:30pm at the Cape Space/Mashpee Chamber offices in Mashpee Commons.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.